The Fed can influence long-term interest rates by

Name: The Fed can influence long-term interest rates by
Brand: Quizplus
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Question

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By influencing the current one-year rate, the Fed can indirectly influence long-term interest rates. Additionally, the Fed can affect people's expectations of future short-term rates through its communication with the public and its policy decisions. These factors combined can impact the demand for money in the short run and ultimately influence long-term interest rates.

The Fed Can Influence Long-Term Interest Rates by